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Valero Shopping Its Two California Refineries

Valero Energy Corp. is putting its two California refineries on the
block, attempting to exit the state ahead of a ratcheting up of air-pollution
regulations, people familiar with the matter said.

San Antonio-based Valero has enlisted Citigroup Inc. to help find a buyer
for the facilities, these people said, adding that the process is in the early
stages.

Valero, one of the largest refiners in the U.S., operates a
78,000-barrel-a-day refinery in Wilmington outside Los Angeles and a
132,000-barrel-a-day refinery in Benicia, in the San Francisco Bay area.
Together the plants represent about 10% of the company’s U.S. refining capacity.

A Valero spokesman declined to comment. A Citi spokesman also declined to comment.